Which ASX shares could be impacted by the Optus outage?

The Optus network has ran into a roadblock on Wednesday. Here's what we know so far.

| More on:
A young man sits on the floor with his back against a sofa hunched over his phone in one hand and his other hand on top of his head as though he is seeing bad news as his face looks sad and anguished.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Optus is experiencing a nationwide outage today in yet another bungle for Australia's second-largest telco provider, straining its relationship with customers. However, the Optus fallout may extend to ASX shares reliant on the network provider.

Believed to have started around 3 am, the network interruption has left millions of customers unable to make phone calls, access the internet, or use other network-connected services.

With its network being used by approximately 10 million Australian customers, the consequences of the outage are significant and far-reaching.

Critical infrastructure falls into chaos

A year and one month after Optus suffered one of the largest cyber attacks in Australian history, the Singtel-owned telco is in hot water once again as the country plunges into a networking nightmare.

At 5:47 am, Optus acknowledged the issues, saying they were "working to restore services as quickly as possible.", as shown below. However, no details on the cause of the outage have been provided at this point in time.

Without any specific details from the source, some have speculated the issue faced by Optus could be a major one. Meanwhile, Australia's communications minister Michelle Rowland has suggested the cause appears to be a "deep network problem".

How Optus outage could hurt and help other ASX shares

Connectivity is a deeply rooted necessity in the modern world. As such, the outage has knock-on effects across Australian companies, including those offering tradeable shares on the ASX. For some, the impact could be a positive while potentially damaging for others.

Several large ASX-listed companies have publicly reported issues with taking inbound phone calls. These include Westpac Banking Corp (ASX: WBC), Ramsay Health Care Ltd (ASX: RHC), and Insurance Australia Group (ASX: IAG)-owned NRMA insurance.

Likewise, Commonwealth Bank of Australia (ASX: CBA) customers may experience issues with receiving their NetCode texts for account access.

Furthermore, a handful of ASX shares might be impacted today due to their network dependence. Though not confirmed, Australian EFTPOS terminal operators such as Tyro Payments Ltd (ASX: TYR), Smartpay Holdings Ltd (ASX: SMP), and Block Inc (ASX: SQ2) may see fewer transactions depending on their customers' chosen network provider.

Aussie Broadband Ltd (ASX: ABB) also relies on the Optus network for its mobile customers. The smaller ASX telco share is up 3.42% to $3.785 despite the mobile meltdown.

Lastly, Telstra Group Ltd (ASX: TLS) could be one ASX share that stands to benefit from the Optus outage. Events like these can leave disgruntled customers searching for a new network provider. The Telstra share price is up 2.45% to $3.965 as we approach midday.

Should you invest $1,000 in Telstra Corporation Limited right now?

Before you buy Telstra Corporation Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Telstra Corporation Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

Motley Fool contributor Mitchell Lawler has positions in Block and Commonwealth Bank Of Australia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband, Block, and Tyro Payments. The Motley Fool Australia has positions in and has recommended Block and Telstra Group. The Motley Fool Australia has recommended Aussie Broadband and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Communication Shares

Investor looking at smartphone and considering Evolution's share purchase plan
Communication Shares

Own Telstra shares? Here's what to watch in next week's half-year results

Here's what analysts are expecting from the telco giant during the first half.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Communication Shares

Missed out on Superloop stock? My favourite ASX telco stock to buy and hold

The ASX telco space is an exciting industry for opportunities.

Read more »

Two women happily smiling and working on their computers in an office
Dividend Investing

Which ASX 200 communications share will pay the best dividend yield in 2025?

Several communications stocks are expected to pay dividend yields above the ASX 200 Index average of 4%.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Communication Shares

Is this my chance to buy Telstra shares?

After drifting lower, I’m considering whether this stock is an opportunity.

Read more »

Man smiling at a laptop because of a rising share price.
Communication Shares

This ASX 200 stock just hit an all-time high and UBS still tips 24% upside

Fear not buying this ASX 200 communications stock despite it trading at a record high, says UBS.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Communication Shares

Are Tuas shares the next Telstra?

I think this Asian telco has an exciting future.

Read more »

Five young people celebrate outside with sparklers
Dividend Investing

1 ASX dividend stock down 47% in 12 months I'd buy right now

These stocks are a real opportunity, in my view.

Read more »

Woman and man calculating a dividend yield.
Communication Shares

3 insiders buy up shares in ASX All Ords stock following crash

Shares were bought swiftly following the crash.

Read more »